To the Members of
ANDHRA CEMENTS LIMITED
Report on the Audit of the Financial Statements
1. Qualified Opinion
We have audited the accompanying financial statements of Andhra Cements Limited("the Company") which comprise the Balance Sheet as at March 31 2019 theStatement of Profit and Loss (including Other Comprehensive Income) the Statement ofChanges in Equity and the Cash Flows Statement for the year then ended and notes to thefinancial statements including a summary of the significant accounting policies and otherexplanatory information (herein after referred to as "the financialstatements").
In our opinion and to the best of our information and according to the explanationsgiven to us except for the possible effects of the matter described in the Basis forQualified Opinion paragraph mentioned below the aforesaid financial statements give theinformation required by the Companies Act 2013 ("the Act") in the manner sorequired and give a true and fair view in conformity with the Indian Accounting Standardsprescribed under section 133 of the Act read with the Companies (Indian AccountingStandards) Rules 2015 as amended ("Ind AS") and other accounting principlesgenerally accepted in India of the state of affairs of the Company as at March 312019its losses (including other comprehensive income) changes in equity and its cashflows for the year ended on that date.
2. Basis for Qualified Opinion
We refer to Note 35 to the financial statements in respect of preparation of thefinancial statements of the Company on going concern basis for the reasons stated therein.During the financial year ended March 31 2019 the Company has incurred losses of
Rs 18011.42 lakhs resulting into accumulated losses of
Rs 70156.70 lakhs and erosion of net worth as at March 31 2019. The Company hasobligation towards fund based borrowings aggregating to Rs101064.49 lakhs as on March 312019 including working capital loans and interest accrued thereon. The Company's currentliabilities have exceeded current assets as on March 31 2019. These matters require theCompany to generate additional cash flow to fund the operations as well as payments tolenders creditors statutory dues and other obligations. These conditions indicate theexistence of a material uncertainty that may cast significant doubt on the company'sability to continue as going concern and therefore the company may be unable to realizeits assets and discharge its liabilities in the normal course of business. Accordingly weare unable to comment on the consequential impact if any on the accompanying financialstatements.
We conducted our audit of the financial statements in accordance with the Standards onAuditing (SAs) specified under section 143(10) of the Act. Our responsibilities underthose Standards are further described in the Auditor's Responsibilities for the Audit ofthe Financial Statements section of our report. We are independent of the Company inaccordance with the Code of Ethics issued by the Institute of Chartered Accountants ofIndia (ICAI) together with the ethical requirements that are relevant to our audit of thefinancial statements under the provisions of the Act and the Rules made thereunder and wehave fulfilled our other ethical responsibilities in accordance with these requirementsand the Code of Ethics. We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our qualified opinion on the financial statements.
3. Emphasis of Matters
We refer to:
(a) Note 40 to the financial statements regarding pending confirmation in respect ofcertain trade receivables security deposits given/taken advances to suppliers tradepayables and advances from customers. The Management believes that on confirmation therewill not be any material impact on the accompanying financial statements.
(b) Note 33(iv) to the financial statements in respect of confiscation of importedcapital goods having import value of Rs3979 lakhs due to non-fulfillment of certainexport obligations.
Our opinion is not modified in respect of these matters.
4. Key Audit Matters
Key audit matters are those matters that in our professional judgment were of mostsignificance in our audit of the financial statements of the current period. These matterswere addressed in the context of our audit of the financial statements as a whole and informing our opinion thereon and we do not provide a separate opinion on these matters. Wehave determined the matter described below to be key audit matters to be communicated inour report:
|S. Key Audit Matter ||How our audit addressed the key audit matter |
|No. || |
|1. Revenue from Sale of Products || |
|(as described in note 3.5 of the financial statements) ||Following audit procedures have been performed to address this key audit matter: |
|Revenue from contracts with customers is recognized when control of the goods are transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods. ||Assessed the design and tested the operating effectiveness of internal controls automated and manual related to revenue recognition. |
|The revenue is one of the key profit drivers. The terms of sales arrangements including the timing of transfer of control delivery specifications create complexity and judgement in determining timing of sales revenues. ||Performed sample test of individual sales transaction and traced to sales invoices sales orders and other related documents. Checked that the conditions for revenue recognitions are satisfied. |
|Accordingly due to the significant risk associated with revenue recognition in accordance with terms of Ind AS 115 Revenue from Contracts with Customers' it was determined to be a key audit matter in our audit of the financial statements. ||Performed inventory reconciliation substantive testing for cut-offs confirmation of receivables balances and analytical procedure. |
| ||Assessed the relevant disclosures made within the financial statements. |
5. Information Other than the Financial Statements and Auditor's Report Thereon
The Company's Board of Directors is responsible for the preparation of the otherinformation. The other information comprises the information included in the ManagementDiscussion and Analysis Director's Report including its Annexure Corporate Governanceand Shareholder's Information but does not include the financial statements and ourauditor's report thereon.
Our opinion on the financial statements does not cover the other information and we donot express any form of assurance conclusion thereon.
In connection with our audit of the financial statements our responsibility is to readthe other information and in doing so consider whether the other information ismaterially inconsistent with the financial statements or our knowledge obtained during thecourse of our audit or otherwise appears to be materially misstated.
If based on the work we have performed we conclude that there is a materialmisstatement of this other information we are required to report that fact. We havenothing to report in this regard.
6. Responsibility of Management and Those Charge with Governance for the FinancialStatements
The Company's Board of Directors is responsible for the matters stated in section134(5) of the Act with respect to the preparation of these financial statements that givea true and fair view of the financial position financial performance total comprehensiveincome changes in equity and cash flows of the Company in accordance with the accountingprinciples generally accepted in India including the accounting standards specified undersection 133 of the Act. This responsibility also includes maintenance of adequateaccounting records in accordance with the provisions of the Act for safeguarding theassets of the Company and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; making judgments andestimates that are reasonable and prudent; and design implementation and maintenance ofadequate internal financial controls that were operating effectively for ensuring theaccuracy and completeness of the accounting records relevant to the preparation andpresentation of the financial statements that give a true and fair view and are free frommaterial misstatement whether due to fraud or error.
In preparing the financial statements the Board of Directors is responsible forassessing the Company's ability to continue as a going concern disclosing as applicablematters related to going concern and using the going concern basis of accounting unlessthe Board of Directors either intends to liquidate the Company or to cease operations orhas no realistic alternative but to do so.
Those Board of Directors are also responsible for overseeing the Company's financialreporting process.
7. Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financialstatements as a whole are free from material misstatement whether due to fraud or errorand to issue an auditor's report that includes our opinion. Reasonable assurance is a highlevel of assurance but is not a guarantee that an audit conducted in accordance with SAswill always detect a material misstatement when it exists. Misstatements can arise fromfraud or error and are considered material if individually or in the aggregate theycould reasonably be expected to influence the economic decisions of users taken on thebasis of these financial statements.
As part of an audit in accordance with SAs we exercise professional judgment andmaintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statementswhether due to fraud or error design and perform audit procedures responsive to thoserisks and obtain audit evidence that is sufficient and appropriate to provide a basis forour opinion. The risk of not detecting a material misstatement resulting from fraud ishigher than for one resulting from error as fraud may involve collusion forgeryintentional omissions misrepresentations or the override of internal control.
Obtain an understanding of internal financial controls relevant to the audit in orderto design audit procedures that are appropriate in the circumstances. Under section143(3)(i) of the Act we are also responsible for expressing our opinion on whether theCompany has adequate internal financial controls system in place and the operatingeffectiveness of such controls.
Evaluate the appropriateness of accounting policies used and the reasonableness ofaccounting estimates and related disclosures made by management.
Conclude on the appropriateness of management's use of the going concern basis ofaccounting and based on the audit evidence obtained whether a material uncertaintyexists related to events or conditions that may cast significant doubt on the Company'sability to continue as a going concern. If we conclude that a material uncertainty existswe are required to draw attention in our auditor's report to the related disclosures inthe financial statements or if such disclosures are inadequate to modify our opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor'sreport. However future events or conditions may cause the Company to cease to continue asa going concern.
Evaluate the overall presentation structure and content of the financial statementsincluding the disclosures and whether the financial statements represent the underlyingtransactions and events in a manner that achieves fair presentation.
We communicate with those charged with governance regarding among other matters theplanned scope and timing of the audit and significant audit findings including anysignificant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have compliedwith relevant ethical requirements regarding independence and to communicate with themall relationships and other matters that may reasonably be thought to bear on ourindependence and where applicable related safeguards.
From the matters communicated with those charged with Governance we determine thosematters that were of most significance in the Audit of Financial Statements of the currentperiod and are therefore the key audit matters. We describe these matters in our Auditor'sReport unless Law or Regulation precludes public disclosure about the matter or when inextremely rare circumstances we determine that a matter should not be communicated in ourReport because the adverse consequences of doing so would reasonably be expected tooutweigh the public interest benefits of such communication.
8. Report on Other Legal and Regulatory Requirements
1. As required by the Companies (Auditor's Report) Order 2016 ("the Order")as amended issued by the Central Government of India in terms of section 143 (11) of theAct we give in the "Annexure A" a statement on the matters specified inparagraphs 3 and 4 of the Order.
2. As required by Section 143(3) of the Act based on our audit we report that:
a) We have sought and except for the possible effects of the matter described in the"Basis for Qualified Opinion" paragraph obtained all the information andexplanations which to the best of our knowledge and belief were necessary for the purposesof our audit.
b) Except for the possible effects of the matter described in the "Basis forQualified Opinion" paragraph in our opinion proper books of account as required bylaw have been kept by the Company so far as it appears from our examination of thosebooks.
c) The Balance Sheet the Statement of Profit and Loss (including Other ComprehensiveIncome) Statement of Changes in Equity and the Cash Flow Statement dealt with by thisReport are in agreement with the relevant books of account.
d) Except for the possible effects of the matter described in the "Basis forQualified Opinion" paragraph in our opinion the aforesaid financial statementscomply with the Ind AS specified under Section 133 of the Act read with theCompanies (Indian Accounting Standards) Rules 2015 as amended.
e) The matter described in the "Basis for Qualified Opinion" paragraph inour opinion may have an adverse effect on the functioning of the Company.
f) On the basis of the written representations received from the directors as on March31 2019 taken on record by the Board of Directors none of the directors is disqualifiedas on March 31 2019 from being appointed as a director in terms of Section 164 (2) of theAct.
g) The qualification relating to the maintenance of accounts and other mattersconnected therewith are as stated in the "Basis for Qualified Opinion"paragraph;
h) Withrespecttotheadequacyoftheinternalfinancial controls over financial reporting ofthe Company and the operating effectiveness of such controls refer to our separate Reportin "Annexure-B". Our report expresses unmodified opinion on the adequacy andoperating effectiveness of the Company's internal financial controls over financialreporting.
i) With respect to the other matters to be included in the Auditor's Report inaccordance with the requirements of section 197(16) of the Act as amended:
In our opinion and to the best of our information and according to the information andexplanations given to us the Company has not paid any remuneration to its directors inaccordance with the provisions of Section 197 of the Act.
j) With respect to the other matters to be included in the Auditor's Report inaccordance with Rule 11 of the Companies (Audit and Auditors) Rules 2014 as amended inour opinion and to the best of our information and according to the explanations given tous:
i. The company has disclosed the impact of pending litigations on its financialposition in the financial statements. (Refer Note 33 of the Financial Statements)
ii. Except for the possible effects of the matter described in the "Basis forQualified Opinion" pargraph the company has made provision under the applicable lawor accounting standards. The company did not have any long-term contract includingderivative contract for which there were material foreseeable losses.
iii. According to the information and explanation given to us an amount of Rs101.91lakhs and Rs1.92 lakhs pertaining to unpaid/unclaimed matured Deposits and RedeemableCumulative First Preference Shares respectively are yet to be transferred to the InvestorEducationandProtectionFundbytheCompanyason March 31 2019.
|For CHATURVEDI & PARTNERS |
|Chartered Accountants |
|Firm Registration No. 307068E |
|ANUJ MAHANSARIA |
|Membership No. 500819 |
|New Delhi |
|May 29 2019 |
Annexure "A" referred to The Independent Auditor's Report of even date to theMembers of Andhra Cements Limited ("the Company") on the financial statementsfor the year ended March 31 2019
(i) (a) The Company has maintained proper records showing full particulars includingquantitative details and situation of fixed assets.
(b) The Company has a program of verification to cover all the items of fixed assets ina phased manner which in our opinion is reasonable having regard to the size of theCompany and the nature of its assets. Pursuant to the program certain fixed assets werephysically verified by the management during the year. According to information andexplanations given to us no material discrepancies were noticed on such verification.
(c) According to information and explanations given to us the title deeds of theimmovable properties have been mortgaged as security with the Banks and FinancialInstitutions for securing the borrowings and loans raised by the Company. On the basis ofour examination of the records of the Company and copy of the title deeds of immovableproperties the title deeds of immovable properties are held in the name of the Company.
(ii) According to the information and explanations given to us physical verificationof inventories has been conducted by the management at reasonable intervals during theyear. The discrepancies noticed on verification between physical inventories and bookrecords were not material and have been properly dealt with in the books of account.
(iii) According to the information and explanations given to us the Company has notgranted loan secured or unsecured to companies firms limited liability partnerships orother parties covered in the register maintained under Section 189 of the Act.Accordingly paragraph 3 (iii)(a) (iii)(b) and (iii)(c) of the Order are not applicableto the Company.
(iv) According to the information and explanations given to us there are no loansguarantee or securities granted and made investment in respect of which provisions ofsection 185 and 186 of the Act are applicable to the Company.
(v) According to the information and explanations given to us the Company has notaccepted any deposits within the meaning of Section 73 to 76 of the Act and the rulesframed thereunder to the extent notified during the year. Further in respect of depositsaccepted by the Company during an earlier year the Company Law Board (Southern RegionalBench) has by its order dated July 07 2001 directed the company to repay the saiddeposits in accordance with the scheme sanctioned by the BIFR. However the BIFR in itsModified Rehabilitation Scheme dated July 21 2008 directed the fixed deposits holders toaccept the outstanding principal amount in four annual installments on interest freebasis. Further no other Order against the Company has been passed by the Company LawBoard or National Company Law Tribunal or Reserve Bank of India or any Court or any otherTribunal. In respect of these deposits the Company is yet to comply with the requirementof maintaining liquid assets and filing of Return of Deposit.
(vi) We have broadly reviewed the cost records maintained by the Company pursuant tothe Rules made by the Central Government under sub-section (1) of Section 148 of the Actand are of the opinion that prima facie the prescribed accounts and records have beenmade and maintained. We have however not made a detailed examination of these recordswith a view to determining whether they are accurate or complete.
(vii) (a) According to information and explanations given to us the Company is notregular in depositing of undisputed statutory dues of Goods and Services Tax (GST) withthe appropriate authorities. However in case of Provident Fund Employee's StateInsurance Customs Duty Income Tax Cess and other statutory dues as applicable thecompany is generally regular in depositing with the appropriate authorities. There were nooutstanding of such undisputed statutory dues for a period of more than six months fromthe date it become payable except the following:
|S. No. Name of the Statute ||Nature of Dues ||Amount (Rs in lakhs) ||Period to which it relates ||Due Date |
|1. Goods and Services Tax Act 2017 ||Interest on GST* ||21.28 ||November 21 2017 to January 8 2018 ||January 8 2018 |
| || ||41.44 ||December 21 2017 to March 20 2018 ||March 20 2018 |
| || ||38.21 ||January 21 2018 to April 7 2018 ||April 7 2018 |
| || ||89.23 ||February 21 2018 to July 16 2018 ||July 16 2018 |
| || ||55.82 ||March 21 2018 to August 14 2018 ||August 14 2018 |
*Interest payment on GST is continuously default which is being due on or afterNovember 21 2017 and still pending to be paid as on the reporting date.
(b) According to the information and explanations given to us and the records ofthe Company examined by us there were no outstanding dues in respect of Income Tax SalesTax Service Tax Goods and Services tax Custom duty Excise Duty and Value Added Taxwhich have not been deposited on account of any dispute except the following:
|S. No. Name of the Statute ||Nature of Dues ||Amount (Rs in lakhs) ||Period to which amount relates ||Forum where dispute is Pending |
|1 Central Excise Act1944 ||Central Excise Duty ||10.61 ||2004-05 ||High Court |
| ||Central Excise Duty ||650.96 ||2006-12 ||CESTAT |
| ||Central Excise Duty ||140.50 ||2007-09 ||CESTAT |
| ||Central Excise Duty ||1.82 ||2010-11 ||CESTAT |
| ||Central Excise Duty ||984.70 ||1995-2013 ||Supreme Court |
| ||Central Excise Duty ||799.53 ||2013-16 ||CESTAT |
| ||Central Excise Duty ||231.00 ||2007-10 ||CESTAT |
|2 Finance Act1994 ||Service Tax ||55.65 ||2014-16 ||CESTAT |
| ||Service Tax ||49.08 ||2013-19 ||Commissioner (Appeal)* |
| ||Service Tax ||298.63 ||2007-10 ||CESTAT |
| ||Service Tax ||31.66 ||2008-09 ||Commissioner (Appeal) |
| ||Service Tax ||16.03 ||2009-10 ||Commissioner (Appeal) |
|3 APGST Act/CST Act ||Sales Tax ||26.96 ||1995-96 ||High Court |
| ||Sales Tax ||8.11 ||2001-02 ||Tribunal |
| ||Sales Tax (CST) ||16.65 ||1991-92 ||High Court |
| ||Sales Tax (CST) ||6.53 ||1992-93 ||High Court |
| ||Sales Tax (VAT) ||101.11 ||2014-16 ||Appellate Deputy Commissioner (CT) |
| ||Sales Tax (CST) ||19.71 ||2014-15 ||Appellate Deputy Commissioner (CT) |
*Appeal filled with Commissioner on May 07 2019
(viii) According to the information and explanations given to us the Company has nottaken any loans or borrowings from the Government or has not issued any Debenture. TheCompany was in default in repayment of loan taken from a lender (EARC) and subsequentlythe default has been made good by conversion of outstanding principal and interest intoworking capital term loan and funded interest term loan and reschedulement of loan by thelender through its letter dated June 04 2018. The Company has defaulted in repayment ofloans or borrowings to Financial Institutions and Banks as on the reporting date as givenbelow:
| || || ||( Rs in Lakhs) |
|Name of lender ||Amount Outstanding as on March 31 2019 (Principal) ||Amount Outstanding as on March 31 2019 (Interest) ||Period of Default (In Days) * |
|Edelweiss Asset Reconstruction Company ||- ||2608.79 ||1 336 |
|Ltd (EARC) ||12289.32 ||- ||1 |
|HDFC Limited ||- ||1435.41 ||1 366 |
| ||1211.00 ||- ||1 359 |
|Andhra Bank ||- ||348.20 ||1 93 |
| ||99.00 ||- ||1 - 93 |
|Karur Vysya Bank ||- ||37.14 ||1 - 11 |
| ||24.50 ||- ||1 - 21 |
*Including default made good during the year.
(ix) According to the information and explanations given to us the Company has notraised money by way of initial public offer or further public offer (including debtinstruments) during the year. In our opinion the term loan was applied for the purposefor which the loan was obtained during the year.
(x) According to the information and explanations given to us no fraud by the Companyor on the Company by its officers or employees have been noticed or reported during theyear.
(xi) According to the information and explanations given to us the Company has notpaid or provided any managerial remuneration during the year. Accordingly the provisionsof Para 3 (xi) of the Order are not applicable to the Company.
(xii) The Company is not a Nidhi Company. Accordingly the provisions of Para 3 (xii)of the Order are not applicable to the Company.
(xiii) In our opinion and according to the information and explanations given to usall transactions with the related parties are in compliance with sections 177 and 188 ofthe Act wherever applicable and the details of related party transactions have beendisclosed in the financial statements as required by the applicable accounting standards.
(xiv) According to the information and explanations given to us the Company has notmade any preferential allotment or private placement of shares or fully or partlyconvertible debentures during the year. Accordingly the provisions of clause 3(xiv) of the Order are not applicable to the company.
(xv) According to the information and explanations given to us the company has notentered into any non-cash transactions with directors or persons connected with them asreferred to in section 192 of the Act. Accordingly the provisions of clause 3 (xv) of theOrder are not applicable to the company.
(xvi) According to the information and explanations given to us the Company is notrequired to be registered under section 45 IA of the Reserve Bank of India Act1934.
|For CHATURVEDI & PARTNERS |
|Chartered Accountants |
|Firm Registration No. 307068E |
|ANUJ MAHANSARIA |
|Membership No. 500819 |
|New Delhi |
|May 29 2019 |
Annexure "B" to the Independent Auditor's Report on the financial statementsof Andhra Cements Limited ("the Company") for the year ended March 31 2019
Report on the Internal Financial Controls over Financial Reporting under Clause (i) ofSub-section 3 of Section 143 of the Companies Act 2013 ("the Act")
We have audited the internal financial controls over financial reporting of AndhraCements Limited ("the Company") as of March 31 2019 in conjunction with ouraudit of the financial statements of the Company for the year ended on that date.
Management's Responsibility for Internal Financial Controls
The Company's management is responsible for establishing and maintaining internalfinancial controls based on the internal control over financial reporting criteriaestablished by the Company considering the essential components of internal control statedin the Guidance Note on Audit of Internal Financial Controls over Financial Reportingissued by the Institute of Chartered Accountants of India. These responsibilities includethe design implementation and maintenance of adequate internal financial controls thatwere operating effectively for ensuring the orderly and efficient conduct of its businessincluding adherence to company's policies the safeguarding of its assets the preventionand detection of frauds and errors the accuracy and completeness of the accountingrecords and the timely preparation of reliable financial information as required underthe Companies Act 2013.
Our responsibility is to express an opinion on the Company's internal financialcontrols over financial reporting of the Company based on our audit. We conducted ouraudit in accordance with the Guidance Note on Audit of Internal Financial Controls OverFinancial Reporting (the "Guidance Note") issued by the Institute of CharteredAccountants of India and the Standards on Auditing prescribed under section 143(10) of theCompanies Act 2013 to the extent applicable to an audit of internal financial controls.Those Standards and the Guidance Note require that we comply with ethical requirements andplan and perform the audit to obtain reasonable assurance about whether adequate internalfinancial controls over financial reporting was established and maintained and if suchcontrols operated effectively in all material respects.
Our audit involves performing procedures to obtain audit evidence about the adequacy ofthe internal financial controls system over financial reporting and their operatingeffectiveness. Our audit of internal financial controls over financial reporting includedobtaining an understanding of internal financial controls over financial reportingassessing the risk that a material weakness exists and testing and evaluating the designand operating effectiveness of internal control based on the assessed risk. The proceduresselected depend on the auditor's judgment including the assessment of the risks ofmaterial misstatement of the financial statements whether due to fraud or error.
We believe that the audit evidence we have obtained is sufficient and appropriate toprovide a basis for our audit opinion on the Company's internal financial controls systemover financial reporting.
Meaning of Internal Financial Controls Over Financial Reporting
A company's internal financial control over financial reporting is a process designedto provide reasonable assurance regarding the reliability of financial reporting and thepreparation of financial statements for external purposes in accordance with generallyaccepted accounting principles. A company's internal financial control over financialreporting includes those policies and procedures that (1) pertain to the maintenance ofrecords that in reasonable detail accurately and fairly reflect the transactions anddispositions of the assets of the company; (2) provide reasonable assurance thattransactions are recorded as necessary to permit preparation of financial statements inaccordance with generally accepted accounting principles and that receipts andexpenditures of the company are being made only in accordance with authorisations ofmanagement and directors of the company; and (3) provide reasonable assurance regardingprevention or timely detection of unauthorised acquisition use or disposition of thecompany's assets that could have a material effect on the financial statements.
Inherent Limitations of Internal Financial Controls Over Financial Reporting
Because of the inherent limitations of internal financial controls over financialreporting including the possibility of collusion or improper management override ofcontrols material misstatements due to error or fraud may occur and not be detected.Also projections of any evaluation of the internal financial controls over financialreporting to future periods are subject to the risk that the internal financial controlover financial reporting may become inadequate because of changes in conditions or thatthe degree of compliance with the policies or procedures may deteriorate.
In our opinion to the best of our information and according to the explanations givento us the Company has in all material respects an adequate internal financial controlssystem over financial reporting and such internal financial controls over financialreporting were operating effectively as at March 31 2019 based on the internal controlover financial reporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit of Internal FinancialControls Over Financial Reporting issued by the Institute of Chartered Accountants ofIndia.
Emphasis of Matter:
Attention is drawn to:
Internal control system for financial reporting with respect to confirmations ofcertain trade receivables security deposits given/ taken advances to suppliers tradepayables and advances from customers are pending (Read with note no. 40 of the financialstatements) may potentially have impact in the financial statements.
Our opinion is not modified in respect of this matter.
|For CHATURVEDI & PARTNERS |
|Chartered Accountants |
|Firm Registration No. 307068E |
|ANUJ MAHANSARIA |
|Membership No. 500819 |
|New Delhi |
|May 29 2019 |